Ethiopian lawmakers ratify property tax proclamation
Addis Ababa, January 14, 2025 (FMC) – During its 15th regular session held today, the House of People’s Representatives of Ethiopia (HoPR) has ratified the property tax proclamation with a majority vote.
It is worth noting that this bill was examined and forwarded to the parliament by the Council of Ministers during its 35th regular session held on 14th June 2024. The proclamation aims to achieve an equitable distribution of wealth among the urban population, facilitate the provision of government services with improved quality and modern standards, and help collect investment costs for continuous urban infrastructure development through taxes imposed due to property value growth.
The proclamation will be applicable in cities across the country, and it will enable regional states to create and issue their own property tax laws pursuant to the national proclamation and in accordance with their specific circumstances.
In his remarks at today’s session, Chief Government Whip at the House of Peoples Representatives, Tesfaye Beljige, stated that revenue collection is one of the sectors that have received attention in the national reform works.
He stated that the property tax bill is crucial for tax collection as the basis for tax collection needs to be improved.
Chairman of the parliament’s Standing Committee on Planning, Budget & Finance Mr. Desalegn Wodaje said while presenting the standing committee’s report and recommendations to the House that the bill has paramount significance in collecting tax and investing it on infrastructure and various services. The Chairman said that this proclamation has been in effect in other African countries for more than 30 years.
During today’s session, few MPs have raised their comments and concerns regarding the impact of proclamation in relation to standard of living and source of income.
Responding to those concerns, the Chairman of the Standing Committee explained that the bill will not bring about excessive economic impact on the people and that the income tax will be invested on infrastructures and services.
Subsequently, the parliament approved the bill as Proclamation No. 1365/2017 with a majority vote, four against, and ten abstentions.